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Recent market volatilities and disruptions have highlighted the perils of industrial atrophy and spatial inequality within advanced economies. Despite growing interest in lifting regional economic performance, entrenched neo-classical frameworks limit the extent of effective government intervention. This paper aims to ameliorate the tension between the free market focus on least-cost procurement and broader requirements for regeneration. Based on our literature review, we propose a novel framework recommending public procurement processes monetarize the significant and overlooked value of domestic investment within advanced manufacturing clusters. The financial benefits of such a strategic place-based approach are likely to be greatest in lagging regions.

Unlocking public procurement as a tool for place-based industrial strategy